Government spending on infrastructure development is where its at

Posted On Thursday, 17 April 2008 02:00 Published by eProp Commercial Property News
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Neil Potgieter took the helm of Grinaker-LTA Building earlier this year, following the promotion of predecessor Neil Cloete to Group MD of Grinaker-LTA. Unveiling his first strategic plan for the division, Potgieter notes that Grinaker-LTA Building’s order book has changed in recent months from one dominated by private sector projects to one in which a substantial portion of work is coming from Government.  “In the past number of years, most of our work has traditionally been for private sector clients, on projects like office blocks, shopping centres and residential accommodation. Our current order book has changed - most notably in the Cape - to one in which a large chunk of our work is now being undertaken for Government.”

Construction IndustryThe division is busy with more than R1 billion of work at Cape Town International Airport, a state-of-the-art forensics facility planned to boost the country’s fight against crime, three 2010 soccer stadiums, a prison in Kimberley and a youth care centre for juvenile offenders in Bhisho.

Grinaker-LTA Building, in joint venture with Stocks Africa, is undertaking a R664-million contract to build a new integrated terminal, as well as a R375-million contract for the construction of a new multi-storey parkade, at Cape Town International Airport.
In Plattekloof, Cape Town, the division is currently busy with the construction of a new high-tech forensic facility that will enhance the SA Police Service’s fight against crime. This R359-million contract for the Department of Public Works is scheduled for completion in March 2010.

The construction of the new Kimberley medium security correctional centre is progressing well, and is on track for completion in February next year, Potgieter states. Grinaker-LTA Building is undertaking this R777-million contract in a joint venture with BEE company Keren Kula Construction. Situated on Griekwastad Road, 1 km outside Kimberley, this facility will provide accommodation for 3 000 adult male offenders.

Grinaker-LTA Building’s R230-million contract for the construction of the Department of Public Works’ new “Special Youth Care Centre” in the Eastern Cape capital of Bhisho is due for completion in May 2009. This facility is designed to accommodate 320 juvenile offenders.

The division’s work on 2010 stadiums includes the construction contract for the main event stadium, Soccer City in Soweto, the contract for the construction of the new Orlando Stadium in Soweto - which is due for completion next month (May 2008) – and the construction of Nelson Mandela Stadium in Port Elizabeth. Grinaker-LTA’s Soccer City and Nelson Mandela Stadium contracts are being undertaken in joint venture with Interbeton bv, part of the Royal BAM Group from Holland.

But while Government contracts have bolstered its order book, Grinaker-LTA Building is still keeping busy with private projects ranging from more than R1.5-billion of retail contracts and a striking new casino resort to luxury housing and golf courses in Mauritius.

The division’s retail projects include a R350-million contract to extend and refurbish the popular Eastgate shopping centre in Bedfordview, east of Johannesburg, and a R550-million contract – being undertaken in joint venture with ENZA Construction – to build a new 60 000 m2 shopping centre in Durban’s new Bridge City Precinct, which boarders Kwa-Mashu and Phoenix. Grinaker-LTA is also building two more new malls in Durban – the 35 000 m2 Westwood Shopping Centre in Westville and Philani Valley in Umlazi, and is wrapping up contracts to extend and refurbish Richards Bays’ Boardwalk Shopping Centre.

Near Krugersdorp (Mogale City), Grinaker-LTA Building is close to completing its R733-million contract for the construction of the Silverstar Casino Resort.

Rehm-Grinaker, the Mauritian construction company in which Grinaker-LTA is a shareholder, has an order book in the region of R600 million, Potgieter says. This includes work on several projects falling under the groundbreaking new Mauritian property ownership system, the ‘Integrated Resort Scheme’ (IRS), which is allowing foreigners to purchase property in Mauritius for the first time. Rehm-Grinaker’s contracts include an 18-hole championship golf course designed by Ernie Els at the Anahita resort. This development is set to be the largest and most extravagant IRS development on the East coast of Mauritius. It also aims to be one of the top five developments of its kind in the world in the next five years, amid tough competition from regions like Dubai.
 
With its growing workload, Grinaker-LTA Building has also doubled its people resources, and Potgieter says he currently has in excess of 4 700 people under his leadership. He has cited safety and skills development as strategic priorities going forward, and notes that the shortage of skills in the industry is a challenge. “Training is a critical focus area, and we have numerous learnerships, apprenticeships and bursary schemes in place to begin to address the current skills deficit. An in-house training centre is operating in KwaZulu-Natal and provides training in various construction disciplines such as carpentry and brick-laying.”

Potgieter believes one of the greatest challenges currently facing the building industry is the power outages. “The power crisis could cause significant delays and disruptions on new developments. In most cases, we have stand-by generators on our sites, to minimise downtime, but this is a concern.

“The upside, however, is the new business to be picked up in the construction of new power stations. As part of the multi-disciplinary Aveng Group, Grinaker-LTA Building is well-placed to capitalise on this,” he concludes.

 

Last modified on Tuesday, 08 October 2013 18:29

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